Revenues are vital for the expansion and growth of any organization. The reason is that they are an important component of the organizations net income. Hence, they are central to financial analysis. Read the required reading – Revenue Recognition. It’s Here. Now What? about Topic 606. (To view this reading, please open the link provided and download the “PDF full text.”) Discuss the changes this brings to revenue recognition. Include your opinion on the effectiveness of this new regulation.

Chapters 6 & 7 in Financial Statement Analysis

Bauman, M., & Shaw, K. (2016). Balance sheet classification and the valuation of deferred taxes. Research in Accounting Regulation, 28(2), p. 77-85.

Rix, N., Wille, M., & Dauberman, M. (2017). Revenue recognition. Its here. Now what? California CPA, 86(4), 11-18. (To view this reading, please open the link provided and download the PDF full text.)

Arnold, A., Ellis, R., & Krishnan, V. (2018). Toward effective use of the statement of cash flows. Journal of Business and Behavioral Sciences. 30(2), 46-62.

Financial Accounting Standards Board. (1984). Statement of financial accounting concepts no. 5: Recognition and measurement in financial statements of business enterprises. Retrieved from http://www.fasb.org/cs/BlobServer?blobcol=urldata&blobtable=MungoBlobs&blobkey=id&blobwhere=1175820899597&blobheader=application%2Fpdf

Subramanyam, K. R. (2014). Financial statement analysis (11th ed.). New York, NY: McGraw Hill. ISBN13: 9780078110962